FINANCE

TAXATION OF SOLE PROPRIETOR AND PARTNERSHIP

When dealing  with taxation of sole proprietor and partnership. The following principles has to be borne in mind.
-profit is taxed in the hand of the owner or Partner(s).
-Aggregating taxable income.
-Expenses allowable are specified by the act and case law.
However expenses allowable are expenses incurred wholly,exclusively and reasonably in the business.
Some expenses allowed are below.
(a)Rent.
(b) capital allowance as specified by law.
(c) salary .
(d) Donation to approved bodies.
(e) Repayment of interest on loan.
(f)Others as specified by law.

Disclaimer: Obi Azubuike is not by this publication acting as a professional advisers and therefore not liable to any  damage whatsoever for your acting or refraining to act based on  this publication. Consult your professional for advice. 

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